Tribune Company Common Stock (NYSE: TRCO) is having a strong start to the day in the market this morning, and for good reason. Recently, we’ve been seeing several acquisition rumors surrounding the idea that the company would be taken over. Then, minutes ago, investors learned that the rumors were valid and the takeover is going to happen. Of course, this led to excitement in the investing community, pushing the stock upward. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. At the moment (9:01), TRCO is trading at $42.50 per share after a gain of $2.21 per share or 5.49% thus far today.
TRCO Gains On Takeover News
As mentioned above, Tribune Company is having an incredibly strong start to the trading session this morning after announcing that Sinclair Broadcast Group, Inc. (NASDAQ: SBGI) has made the decision to acquire the company. The acquisition will come at a price of $43.50 per share, bringing the total to approximately $3.9 billion. Also, Sinclair will assume about $2.7 billion in TRCO debt. In a statement, Peter Kern, CEO at Tribune, had the following to offer…
“Today’s announcement is the culmination of an extensive strategic review, which has delivered significant value to our stockholders… Since we announced the strategic review 15 months ago, we have streamlined the business, monetized non-core assets, strengthened our balance sheet and returned more than $800 million to stockholders – all of which has resulted in a 50% increase in stockholder value. We are extremely proud to join Sinclair, and we’re excited that Tribune stockholders and employees will have the opportunity to participate in the long-term growth of the combined company.”
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on both TRCO and SBGI. In particular, we’ll be following the news surrounding the acquisition as the deal is still subject to customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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